Hauser Insurance Group Enhances Retirement Planning Expertise at National Conference

Cincinnati-based Hauser Insurance Group has long been regarded as a leader in the retirement planning industry. Specifically, Hauser designs targeted retirement plans for businesses in diverse industries. From small businesses to large corporations, Hauser Insurance works with clients to help fund employees’ retirement while maximizing each company’s bottom line.

NAPA Virtual Conference Overview

On July 27-28, 2021, Hauser Insurance Group participated in the National Association of Plan Advisors (or NAPA) D.C. Fly-in Virtual Forum. This pivotal event attracted the United States’ top-tier retirement plan advisors. Christa Kreinest, Hauser’s Managing Director of Retirement Plan Solutions, represented the Company at the 2021 NAPA Virtual Conference.

These accomplished retirement industry professionals engaged with high-level federal policymakers, including United States Senate and House members. The retirement plan advisors advocated for legislation favorable to the retirement industry.

In addition, Forum attendees dialogued with policymakers and regulators on retirement-related issues. Examples include Department of Labor plans, current retirement policy legislation, state legislative proposals, and pertinent retirement litigation.

NAPA Virtual Conference Recap

The two-day NAPA Virtual Conference provided attendees with important updates on retirement planning issues. In addition, attendees were invited to engage with legislators and their staff, along with Committee staff members.

Legislative Interactions and Updates

Conference attendees had several opportunities to engage with federal legislators and their staff. Prior to the event’s official start, invited attendees were present for a conversation between the American Retirement Association (or ARA) PAC and Senator Ron Wyden (D-OR).

Senator Wyden is the Chairman of the Senate Finance Committee, which oversees retirement planning issues. As the conference keynote speaker, Chairman Wyden also presented his ideas on retirement policies.

Next, Senator Rob Portman (R-OH) discussed 21^st-century retirement priorities. Senator Portman is an acknowledged retirement policy leader and the Pension Protection Act’s author.

Current Retirement Legislation Update

Attendees viewed a Capitol Hill Committee Staff panel discussion on active retirement-related legislative proposals. Examples included the Automatic Retirement Plan Act, Secure 2.0, and Saver’s Match, among others.

Testimony and Virtual Meetings

During the conference, ARA CEO Brian Graff delivered testimony in front of the Senate Finance Committee. He discussed Congress’ role in building bipartisan retirement industry legislation. During this session, conference attendees were invited to participate in virtual meetings with Capitol Hill legislative staffers.

Department of Labor Priorities

Conference attendees received two updates from Department of Labor officials. Ali Khawar, the Department of Labor’s Acting Assistant Secretary, Employee Benefits Security Administration, reviewed retirement-related regulatory issues.

Attendees also viewed a detailed discussion between ARA CEO Brian Graff and the Department of Labor’s Timothy D. Hauser. Mr. Hauser is the Deputy Assistant Secretary for National Office Operations, Employee Benefits Security Administration. The two officials engaged on a variety of fiduciary issues.

Retirement Plan Fiduciary Responsibilities

As the Internal Revenue Service (IRS) states, retirement planning firms are required to fulfill several fiduciary responsibilities. First, the plan’s fiduciary must act only in the participants’ and their beneficiaries’ interest. The fiduciary’s actions should only relate to the provision of participating workers’ and beneficiaries’ benefits while defraying reasonable plan expenses.

While fulfilling these duties, the fiduciary should adhere to the retirement plan documents and diversify investments as needed. Finally, the fiduciary should conduct their duties with “prudence and diligence” at all times.

How Small Businesses Benefit from Retirement Planning

Small business owners are often so focused on growing their companies that longer-term goals fade into the background. As a result, they may not have given serious consideration to retirement planning for themselves and their employees (if applicable). Other small business owners may have thought that retirement planning only made sense for larger companies.

However, a well-rounded retirement plan can easily address the needs of a growing small business. This comprehensive package offers four significant benefits.

Seamless Savings Growth

A structured retirement plan enables a business owner and their employees to enjoy painless savings accumulation. A plan funded by automatic payroll deductions ensures that contributions are made on schedule.

Multiple Earnings Vehicles

A retirement plan grows through the accumulation of employee and (if applicable) employer contributions. In addition, dividends and interest compounding help the plan to realize additional earnings.

Substantial Tax Advantages

Regardless of a retirement plan’s components, each plan offers four significant tax benefits. First, all retirement plan funds grow on a tax-free basis. Employee contributions (except for Roth contributions) are not taxable until the employee receives them.

If eligible, distributions may receive tax-favored transfers or rollovers into other approved retirement programs. Finally, an employer’s retirement plan contributions are deductible from the employer’s business income.

Employee Recruitment Tool

Businesses that offer employee retirement plans are often regarded as desirable places to work. In a competitive marketplace, a well-constructed retirement plan can become an employee recruitment and retention tool.

Overview of Small Business Retirement Vehicles

According to the United States Department of Labor, experts project that Americans will require 70 to 90% of their pre-retirement income to maintain their current lifestyle after retiring from their jobs. By proactively setting up retirement plans for themselves and eligible employees, employers can maximize the effect of regular plan contributions.

Types of Private-Sector Retirement Plans

Private-sector businesses typically utilize three types of retirement plans. These retirement vehicles are applicable to companies of different types and sizes. A well-regarded retirement planning firm, such as the financial experts at Hauser Insurance Group, can ensure that all offered retirement plans have obtained Internal Revenue Service (or IRS) pre-approval.

Individual Retirement Arrangements

An individual retirement arrangement (previously called an individual retirement account, or IRA) helps to fund a specific employee’s retirement. Although the employee could easily open their own IRA account, their employer can help them to establish and fund this popular retirement vehicle.

Note that IRA earnings are based on marketplace investments. Therefore, the employee’s amount at retirement will reflect their IRA’s respective earnings or losses.

Defined Contribution Plans

A defined contribution plan is an employer-generated plan that does not guarantee a certain amount of funds at retirement. Instead, an employee or their employer (or perhaps both) deposits funds into the employee’s plan account.

These plan contributions may occur at a set rate (e.g. 5% of the employee’s annual salary). When the employee retires, they receive all contributions plus earnings (or minus applicable losses) on their invested funds.

Defined Benefit Plans

A defined benefit plan does guarantee a certain retirement benefit (e.g. $1,500 per month). The benefit amount is generally based upon a defined percentage of pay multiplied by the number of years the person worked for the employer that offers the plan. The employer must contribute enough funds to realize the benefit amount promised to the employee.

A defined benefit plan offers some clear advantages to both parties. However, these plans are complicated and costly to set up and maintain. For that reason, it’s essential to work with a retirement plan provider with demonstrated expertise in these complex retirement vehicles.

For a well-rounded overview of all three private-sector plans, view the U.S. Department of Labor’s “Choosing a Retirement Solution for Your Small Business” graphical presentation. An experienced retirement plan provider, such as Hauser Insurance Group, is well positioned to explain the intricacies of each plan type.

About Hauser Insurance Group

The Cincinnati-based Hauser Insurance Group is a diversified company serving clients in numerous industries. Since 1971, this privately held insurance firm has provided targeted retirement planning solutions to businesses of all types and sizes.

The Company has also demonstrated expertise with the full range of insurance products, and it provides high-level risk management services. Finally, Hauser has designed employee benefits services packages for varied clients’ needs.

In addition to Hauser Insurance Group’s Cincinnati headquarters, the Company has established offices in New York City, Atlanta, Chicago, Kansas City, St. Louis, and Los Angeles. With a presence in these regional markets, Hauser can easily assist clients across the United States.

Local, National, and International Client Base

Public companies, publicly traded retail businesses, and family-owned industrial firms appear on Hauser Insurance Group’s client roster. The Company also meets the defined insurance needs of special-purpose acquisition companies (or SPACs). Finally, Hauser is conversant with multinational corporations’ risk environments and solutions.

A Consultative Approach Brings the Best Results

Hauser Insurance Group recognizes that each client has specialized requirements and constraints. To meet these needs, Hauser confidently utilizes a consultative methodology to design targeted insurance coverages.

When the components are in place, each firm is better equipped to undertake a specific business challenge. Specifically, private equity firms will be ideally positioned to execute a timely merger or acquisition.